The MT103 SWIFT message with optional fields 52a (Ordering institution) and 57a (Account with institution) is presented and analyzed in this article. In previous articles, the basic MT103 SWIFT message with mandatory fields and the MT103 SWIFT Message with optional fields 53B, 70 and 71G were considered. Read them to get additional information and a better understanding of the MT103 SWIFT Message.
The picture below shows the main actors and highlights the optional fields transported in the messages.
The table below contains information that is highlighted in the examples provided in the SWIFT Message Reference Guide. An additionl column (comments) provides further explanation on the fields to ease their understanding.
Narratives and notes on this MT103 SWIFT Message
As usual, there is more in this MT103 SWIFT message than meets the eye. The following narrative and notes allow to get a deeper understanding of the message content.
Narrative and note 1 (Main purpose of this MT103 SWIFT message)
The Sender (BNPAFRPP) is asking Receiver (PNBPUS3N) to debit sender’s account and credit account of the Bank (OCBCSGSG) indicated in tag 57A.
This indicates that Sender and Beneficiary customer’s Bank do not have direct account relationship in the currency of the transaction (USD). Otherwise the sender would send the message directly to the beneficiary customer’s Bank.
Narrative and note 2
The ordering institution (Tag 52D) is provided in the MT103 SWIFT Message. This means the ordering customer is not customer of the Sender. BNPAFRPP sends the MT103 on behalf of the ordering institution 52D:BANQUE DELUBAC ET CIE.
BANQUE DELUBAC ET CIE is a small bank that has an agreement with a major bank (BNP PARIBAS) for the processing and settlement of currency transactions. BANQUE DELUBAC ET CIE can then use the correspondent network of BNP PARIBAS.
Narrative and note 3 (Account relationships)
- Sender (BNPAFRPP) has an account relationship with Receiver (PNBPUS3N) in USD currency.
- Receiver (PNBPUS3N) is correspondent of both sender (BNPAFRPP) and Beneficiary Bank (57A:OCBCSGSG) in USD currency. PNBPUS3N can debit BNPAFRPP account and credit OCBCSGSG account.
- Ordering Customer account (:50F:/01234567890) is opened with Ordering Institution (52D:BANQUE DELUBAC ET CIE).
Narrative and note 4
Details of charges (Tag 71A) is SHA. The charges are shared between Ordering and beneficiary customer. Sender pays charges to ordering bank. Beneficiary pays to receiving bank.
It is always interesting to see how much can be said about an MT103 SWIFT message like this one. But the message has not reached the final destination yet (57A:OCBCSGSG). The receiver (PNBPUS3N) must forward it to the beneficiary’s bank. What are the differences between this message and the next one (that PNBPUS3N will forward to OCBCSGSG)? What does that message contain and what are the meaning of the different message elements? These questions will be answered in the next article.